BSNL calling

Apr 3, 2004, 12.04am IST

The overwhelming bulk of landline subscribers in the country have reason to cheer. The Bharat Sanchar Nigam Ltd (BSNL) has slashed its ISD and inter-circle STD tariffs 15-25%, effective 10 April. The announcement, though widely welcomed by consumers, has led to charges that it violates the model code of conduct that the ruling coalition is supposed to observe in the run up to the Lok Sabha polls. The Election Commission is reportedly looking into whether it is tantamount to a pre-poll largesse, handed out by the NDA government to telephone users. This is absurd. The whole idea of segregating BSNL from the DoT and corporatising it subsequently was to ensure an arms-length relationship and minimise government interference. Agreed, the relationship may not be as arms length as it should be. But by that criterion decision making at all public sector undertakings will have to come to a standstill in the run-up to the election. BSNL competes vigorously for market share with private sector telecom companies. Just because elections are round the corner, BSNL cannot hold commercial decisions in abeyance. BSNL's move has already prompted other private telecom companies to start the process of revising their tariffs. The bottom line is PSUs cannot suspend all pricing decisions when the election process is on. Some decisions may benefit consumers, others may hurt them — Delhi Metro Rail Corporation, for instance, has just raised metro fares in the capital — but these are operational matters.

Therefore, it is best that the CEC leaves the public sector companies alone. The Election Commission must focus instead on handouts given directly by the government with a view to influence the voter. It is fairly easy to assess the nature of such give-aways. For instance, if a minister in the NDA government makes BSNL sponsor a school or hospital project in his constituency, it would perhaps be fit case for scrutiny by the Election Commission. The Election Commission must resist taking cognisance of baseless complaints lodged by the opposition in this regard.